When it comes to managing our finances, few tools have revolutionized the way we handle money like credit cards. In the bustling financial landscape of New Zealand, finding the best credit card can make a significant difference in our daily lives. From earning rewarding perks to enjoying financial flexibility, the right credit card can open doors to a world of possibilities.
In this blog post, we’ll dive into the realm of credit cards in New Zealand to help you uncover the top choices tailored to your needs. Whether you’re a frequent traveler seeking travel rewards, a savvy shopper looking for cashback benefits, or a responsible spender aiming to build credit, we’ve got you covered. Join us as we explore the best credit card options in NZ, unravel the unique benefits they offer, and guide you towards a financially empowered future.
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Best Balance Transfer Credit Card
1. Co-operative Bank’s credit card
Co-operative Bank’s credit card presents an appealing long-term low interest rate with an annual fee of $20. The deal entails an enticing 0% interest rate for the initial 6 months, which later adjusts to 12.95%. The annual fee amounts to $20, paid in $10 increments every six months. There is no balance transfer fee, and the monthly payments must exceed the minimum requirement, which is either 3% of the outstanding balance or $10, whichever is higher.
To make use of this credit card, certain factors must be considered. Firstly, you cannot transfer a balance from another The Co-operative Bank card. Additionally, the credit limit must be at least $1,000, and the balance transfer amount cannot exceed 80% of the credit limit, with a minimum of $100 for balance transfers. After the 0% interest period ends, any remaining transferred debt will incur a 12.95% interest until it is fully paid off.
Furthermore, it is essential not to use the card for cash withdrawals or new purchases, as the interest rate for these transactions stands at 12.95%. While you can only perform one balance transfer from another card, it is possible to consolidate balances from multiple cards into a single transfer.
2. Westpac Fee Free Mastercard
Westpac Fee Free Mastercard presents a plethora of benefits without any burdensome charges. With no annual fees, no foreign transaction fees for overseas purchases, and a highly favorable low-interest rate of 12.90% per annum, it’s a compelling choice for financially savvy individuals.
Here’s a summary of the deal’s key features: Firstly, there are no annual fees, providing cardholders with the freedom to enjoy its perks without worrying about extra costs. Secondly, the absence of overseas foreign exchange fees ensures that travelers can make purchases abroad without incurring additional expenses. Thirdly, the credit card offers a competitive interest rate of 12.90% per year, which is considerably lower than many other options in the market.
Moreover, this card presents an attractive balance transfer offer, with a fixed rate of 5.95% for the entire duration of the balance. This enables users to consolidate their debts and manage them more effectively. However, it’s essential to note that monthly payments must exceed the minimum requirement, which is either 2% of the outstanding balance or a minimum of $5, whichever is higher. Responsible credit management will ensure that cardholders can fully benefit from this exceptional offering.
3. ASB Visa Light
ASB Visa Light is presenting a compelling 0% balance transfer opportunity, allowing you to clear your outstanding balance and enhance your financial practices. The deal offers an interest-free period lasting six months, during which you can diligently work towards paying off your debt without incurring any interest charges. However, it’s crucial to take timely action and initiate the balance transfer within the initial 30 days to secure this advantageous 0% interest period. It’s important to note that balance transfers from other ASB cards are not permitted.
The terms of this deal are quite attractive. For the first six months, the interest rate remains at a favorable 0% per annum, offering significant financial relief. Beyond this grace period, the interest charge will rise to 13.50% per annum, necessitating careful financial planning to avoid high interest costs. Additionally, there is no annual fee associated with this offer, which is another appealing aspect.
Moreover, ASB is providing a window of opportunity for interest-free purchases over $1,000 for six months. This means that if you need to make sizeable purchases, you can take advantage of this interest-free period to manage your expenses efficiently.
4. ANZ Low Rate Visa
ANZ Low Rate Visa presents an appealing offer for those seeking to manage short-term debt through a balance transfer, and the first-year annual fee is waived. To make the most of this opportunity, the balance must be settled within 24 months, or else a 9.95%* interest rate will apply to any remaining balance.
The deal entails an initial interest rate of 1.99% for a duration of 24 months, after which it reverts to 12.90%*. During the first year, there is no annual fee, but subsequently, an annual fee of $35 will be charged ($17.50 every six months).
When initiating the balance transfer, no additional fee is imposed. However, it is crucial to effectuate the transfer within the first 30 days to avail of the 0% interest period. Note that transferring a balance from another ANZ card is not permitted.
Once the 0% interest period concludes, any remaining transferred debt will be subjected to a 9.95% interest rate until it is completely paid off. It’s important to avoid using this card for cash withdrawals or purchases, as new purchases will also incur a 9.95% interest rate.
Best Travel Benefits Credit Card
5. American Express Airpoints Platinum
American Express Airpoints Platinum comes with a $195 annual fee but offers a plethora of valuable features. Cardholders can explore the detailed review of this credit card to learn more about its benefits. One of the significant advantages is the ability to use Airpoints Dollars for various purposes such as gifts, food and beverages, shopping at Mitre 10 and other hardware stores, flights, and numerous other options. Additionally, new applicants can enjoy a sign-up bonus of 300 Airpoints Dollars after being approved and spending $1,500 on the card within the first three months, effectively covering the membership fee for at least the initial year.
This credit card stands out with its high earning rate of Airpoints Dollars, approximately 1.70 for every NZ$100 spent, making it an attractive choice for those looking to grow their Airpoints balance each month. Moreover, cardholders benefit from a range of useful insurance perks, including coverage for rental cars and international travel, which could potentially save them hundreds of dollars. Notably, the American Express card is widely accepted across New Zealand, including all major supermarkets and retailers.
The card’s additional perks include mobile phone screen insurance for those who purchased their phone with the American Express card, as well as a notable discount on the Koru Club membership. In conclusion, the American Express Airpoints Platinum is deemed as one of the top credit card choices available, appealing to a wide range of households in New Zealand.
6. Kiwibank Air NZ Airpoints Platinum Visa
Kiwibank Air New Zealand Airpoints Platinum Visa card being discussed here is widely accepted and offers certain benefits, but it comes with a significant annual fee and a lower Airpoints earning rate compared to the AMEX Airpoints Platinum card. While the AMEX card earns 1 Airpoints Dollar for every $59 spent, this Visa card only earns 1 Airpoints Dollar for every $115 spent. This discrepancy makes it a high-fee platinum-level option, which might not be the best choice for those looking to maximize their Airpoints rewards.
The card’s deal includes an interest rate of 20.95% p.a. and an annual fee of $180. To maintain the account in good standing, monthly payments must exceed the greater of either 5% of the balance owing or $10. Additionally, using this credit card to pay for travel expenses provides complimentary overseas travel insurance, which can be beneficial for frequent travelers.
Another feature of this card is the Status Points it offers. For every $200 spent, the cardholder earns 1 status point, which aids in reaching different tier levels such as Silver, Gold, and Gold Elite. If a total of $45,000 is spent within a year, the cardholder will earn 225 Status Points. While this is half the number required to reach the Silver tier, it’s essential to note that 50% of the status points needed for tier progression must be earned on Air New Zealand, Star Alliance, or other Qualifying flights.
Best Rewards & Cashback Credit Cards
7. American Express Gold Rewards Card
American Express Gold Rewards Card is a one-of-a-kind credit and rewards card in New Zealand, offering a delightful fusion of dining benefits and enticing rewards. Applicants can choose between a stylish pink or gold metal card during the application process.
With this card, dining enthusiasts are in for a treat. Each year, cardholders receive a $200 free statement credit when they dine at selected restaurants affiliated with American Express across the country. By spending over $100 on a single bill, $100 will be credited back to their statement. This dining credit is available twice a year, resetting every six months.
The rewards program is equally impressive, with cardholders earning 2 Membership Reward Points for every $1 spent. For those who spend approximately $25,000 annually, a generous reward of 50,000 Membership Reward Points awaits. These points can be converted into 333 Airpoints Dollars, $375 of travel credit (which can be booked through American Express Travel), or roughly $250 credit toward card expenses (equivalent to 52,000 Membership Reward Points).
It’s important to note that the American Express Gold Rewards Card comes with an interest rate of 19.95% per annum. However, customers enjoy a comfortable interest-free period of 55 days. An annual fee of $200 is billed yearly.
8. SBS Visa
SBS Visa is a unique credit card that stands out for being the only one offering cashback to its users. With this card, you have the opportunity to receive a cashback of 67 cents for every $100 spent, providing a little financial benefit with your purchases. However, it’s important to consider some essential aspects of this card before applying.
One key factor to keep in mind is the relatively high-interest rate of 18.50% per annum. If you struggle to pay off your monthly balance in full, this higher-than-average interest rate could potentially lead to significant costs in interest charges, making it less favorable for those who may carry a balance from month to month.
Nevertheless, the card does come with a few attractive features. It provides a reasonable interest-free period of 55 days, allowing you to make purchases without incurring interest as long as you clear your balance within that period. Additionally, you can earn cashback rewards of $1 for every $150 spent on the card, which can add up over time.
It’s important to manage your credit card responsibly and make monthly payments above the minimum amount required, which is either 5% of the closing balance or $10, whichever is greater. This helps you avoid falling into a cycle of debt and maintain a healthy financial standing.
9. TSB Platinum Mastercard
TSB Platinum Mastercard, a top-tier credit card tailored to cater to your premium needs. This exclusive card provides cardholders with exceptional benefits, making it an attractive choice for savvy consumers.
With the TSB Platinum Mastercard, you can earn $1 cashback for every $70 spent, translating to an impressive 1.42 cents back for every dollar spent. This generous rewards program ensures that you can get a little something back with every purchase you make.
In terms of interest rates, the card offers a competitive 20.95% per annum rate. However, with the added advantage of 55 interest-free days, you have the flexibility to manage your payments effectively without incurring any interest during this grace period.
The perks don’t stop there. Alongside the cashback rewards, the TSB Platinum Mastercard provides several valuable features. Cardholders can take advantage of travel insurance and purchase protection, safeguarding your purchases and ensuring peace of mind during your trips. Additionally, a standout benefit is the Mobile Phone Protection feature, which offers insurance coverage against accidental damage or theft when you pay your monthly mobile phone bill using the card.
To maintain your card’s benefits, it is essential to make monthly payments that exceed the minimum requirement, which is either 5% of the closing balance or $10—whichever is greater.
10. ASB VISA Rewards
ASB VISA Rewards, a credit card program that offers an array of enticing benefits for Kiwis looking to make the most of their spending. While some may find the allure of extravagant rewards like Samsung phones appealing, the truth is that earning such rewards requires an impractical amount of spending – $300,000, to be exact. Instead, the focus should be on the more attainable yet equally rewarding options.
With ASB VISA Rewards, Kiwis can earn 1 “True Rewards Dollar” for every $150 spent or even better, 1 for every $75 spent at Mobil stations. These True Rewards Dollars accumulate quickly, and for every $150 spent, you earn $1 in rewards value, equivalent to a 67 cents return for every $100 spent. It’s worth noting that these rewards can’t be used to directly offset your credit card bill but can be redeemed at various partner stores, opening up a world of enticing possibilities.
This credit card comes with a competitive interest rate of 20.95% p.a. and an annual fee of $40, billed conveniently at $20 every six months. To make the most of the rewards, monthly payments must exceed the minimum threshold, which is either 3% of the balance or $10, whichever amount is higher.
What is a Credit Card, and how does it work in NZ?
A credit card is a financial tool that allows you to borrow money from a bank or financial institution for purchases. In NZ, you can use it for online and in-store transactions, paying bills, and withdrawing cash, with the balance payable monthly.
What are the benefits of having a Credit Card in NZ?
Credit cards offer various benefits in NZ, including convenience, reward points, purchase protection, and the ability to build a credit history for future financial opportunities.
How can I apply for a Credit Card in NZ?
To apply for a credit card in NZ, visit the website of the bank or institution of your choice and fill out the online application form, providing necessary personal and financial details.
What factors influence credit card approval in NZ?
Credit card approval in NZ is influenced by factors like credit score, income, employment status, existing debts, and credit history.
What is a credit score, and why is it important for obtaining a Credit Card in NZ?
A credit score is a numerical representation of your creditworthiness. In NZ, banks use it to assess your credit card application and determine your credit limit and interest rate.
How can I improve my credit score in NZ?
To improve your credit score in NZ, pay bills on time, maintain low credit card balances, avoid unnecessary credit applications, and regularly check your credit report for errors.
Are there any fees associated with Credit Cards in NZ?
Yes, Credit Cards in NZ may have annual fees, late payment fees, and foreign transaction fees. Review the card’s terms and conditions to understand the fees applicable.